As the name suggests, a loan against property allows you to secure a loan by using your residential or commercial property as collateral. The property pledged as collateral can be an apartment, a house, a piece of land, or a commercial establishment. Let’s dive into the many benefits of loan against property so we can help ease your concerns.
- Larger Funds
A loan against personal or commercial property can be an excellent financial option when you’re in need of funds. It enhances your borrowing capacity by allowing you to access the dormant value of your passive assets.
In essence, you’re tapping into the real financial potential of your estate to secure a loan amount that can be used to consolidate debt, expand your business venture, treat medical emergencies, opt for higher education, etc. The lender is more comfortable offering a higher amount because the property serves as valuable security.
- Lower Interest Rates
Since it’s a heavily secured option, borrowers can enjoy the benefits of lower interest rates compared to personal loans or credit cards. Check your loan against property eligibility today by getting in touch with us.
- Longer Repayment Tenure
The repayment timeline is also more flexible compared to other forms of loans. With a loan against property, you can opt for flexible tenures of up to 15 years.
- Flexible Eligibility
For most loans, your income is the principal determinant of the amount. But in case of loan against property, it’s primarily the value of your estate that helps dictate the loan amount. So, people who have retired or are self-employed can also apply for a loan against property.
- Easy Processing
Compared to other loan, loans against property have minimal requirements with regards to documentation. You can also benefit from a quick disbursal. The only pre-requisite is that the property should be owned by you and should not be mired in any legal disputes. Want to know more about property documents required for loan against property? Contact your nearest South Indian Bank branch today.
Loan against property is a potent financial tool that can be used to extract benefits from your real estate to get substantial money for personal or business requirements. If used prudently with a sensible financial plan, it can efficiently help overcome monetary challenges.
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Disclaimer: The article is for information purpose only. The views expressed in this article are personal and do not necessarily constitute the views of The South Indian Bank Ltd. or its employees. The South Indian Bank Ltd and/or the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial/non-financial decisions based on the contents and information’s in the blog article. Please consult your financial advisor or the respective field expert before making any decisions.